PETALING JAYA: Workers will face higher monthly salary deductions from June under PERKESO’s new Lindung 24 Jam scheme, which will provide round-the-clock protection to about nine million contrib
The scheme will cover accidents occurring outside working hours and within Malaysia, including accidents at home, road accidents unrelated to work travel, injuries sustained during personal activities, and other incidents not connected to employment.
Workplace accidents will not be covered under Lindung 24 Jam, also known as the Non-Work Disaster Accident Scheme (SKBBK).
The contributions will be borne in full by both local and foreign employees covered under the Employees’ Social Security Act 1969 [Act 4].
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“Contributions are mandatory for all employees, including local and foreign workers, subject to the provisions of Act 4,” PERKESO said in a recently released FAQ.
Contract and part-time employees are also eligible for protection under the scheme, provided they are registered with and contributing to PERKESO and meet the eligibility requirements.
However, self-employed individuals are not covered, as they are required to register and contribute under the Self-Employment Social Security Scheme (Act 789).
Employee contribution rates under the Lindung 24 Jam scheme will be introduced in phases.
For the first two years, contributions will be set at 0.75% of wages, increasing to 1.0% over the following three years and to 1.25% from the sixth year onwards.
The maximum wage ceiling for this scheme is RM6,000. Contributions of those earning above the ceiling will remain unchanged.
For example, employees earning between RM1,600 and RM1,700 will see an additional RM13.15 deducted from their salaries, increasing their total monthly contribution from RM39.40 to RM52.55.
“Employers already contribute 1.25% towards the Employment Injury Scheme, which protects employees against work-related accidents, including commuting accidents,” PERKESO said.
Benefits provided under the Lindung 24 Jam scheme include medical benefits, temporary disablement benefits, permanent disablement benefits, dependants’ benefits, constant attendance allowance, funeral benefits, physical and vocational rehabilitation, Return To Work (RTW) facilities, as well as education benefits.
Employers are responsible for deducting the contributions for the scheme from employees’ wages and remitting them to PERKESO each month.
“The scheme takes effect from contributions for June. Payment for that month must be made no later than July 15. Subsequent monthly contributions must be paid by the 15th day of the following month,” it added.
PERKESO will provide employers with a six-month grace period following the scheme’s implementation. During this period, employers will be exempt from penalties or legal action relating to non-compliance.
Employers who fail to deduct contributions for the mandatory scheme may face imprisonment of up to two years, a fine of up to RM10,000, or both, upon conviction.
